hosted by: katherine t. hall associate director smith college executive education [email protected] ...

Hosted by:

Katherine T. HallAssociate DirectorSmith College Executive [email protected]/execed

mailto:[email protected]

http://www.smith.edu/execed/

Rita Gunther [email protected] Follow me @rgmcgrath

CONTACT RITA



http://www.ritamcgrath.com/


A Tale of Two Companies, two oil billionaires, a Japanese innovator and a whole lot of denial

Copyright 2014 by Rita Gunther McGrath 4

Assumptions in traditional strategy and investment tools


http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=Eq4Jun98kWr0AM&tbnid=ZDIlOEypNpQ6NM:&ved=0CAgQjRwwAA&url=http://www.mindtools.com/pages/article/newSTR_66.htm&ei=rC_DUbOAAa3oiALvsYDYCQ&psig=AFQjCNGm733weY36K1DWf1vVqzVoEvWu3Q&ust=1371832620093738

http://2.bp.blogspot.com/_nk-MVtgF_XM/TGAol9VUt8I/AAAAAAAAAAU/JHe-Lvt5KfQ/s1600/Sony+Ericsson's+market+share.png

http://www.google.com/url?sa=i&source=images&cd=&cad=rja&docid=vcfWf6dUQ--OAM&tbnid=wN7y2bFFqzkpeM:&ved=0CAgQjRwwAA&url=http://www.beyondintractability.org/bi-essay/prisoners-dilemma&ei=gzHDUcD8LsOQiQLy2YFw&psig=AFQjCNGSaHIfpRjf-F5QPW_2vzrMRm1DPQ&ust=1371833091824387

And yet…inter-industry competition?

VS


And yet…present value decision rules?

Source: Clayton Christensen, “Innovation Killers”


And yet…relatively enduring advantages?


The dynamic of a competitive wave

Advantage

TimeInsight!


Gaining insights, fostering innovations

Advantage

TimeInsight!

Launch

RampUp


And Eureka! But what happens next?

Advantage

TimeInsight!

Launch

RampUp

Exploit


So maybe you can extend your advantage

Advantage

TimeInsight!

Launch

RampUp

ExploitExtension? or…


But let’s say that isn’t feasible…implications?

Advantage

TimeInsight!

Launch

RampUp

ExploitExtension? or…

Erosion


Even today, most companies are built for exploitation

Advantage

TimeInsight!

Launch

RampUp

Exploit

Erosion


Increasingly…

i Proficiency at every part of the competitive life cycle is not optional


Pause for Questions

The new strategy playbook

i Continuous Reconfigurationi Healthy Disengagementi Deft Resource Allocationi Innovation Proficiencyi A New Leadership Mindseti Entrepreneurial Career Management


From Stability to Continuous Reconfiguration


But people aren’t good in chaotic environments, so…

i Stability in…8 Leadership8 Strategy8 Values8 Talent8 Customer relationships8 Networks

i Dynamism in…8 Resource allocation8 Budgeting8 Business Portfolio8 Individual job

assignments8 Decision-making

Innovation, experimentation and excellence are the watchwords


Ask yourself

1. What in our organization should stay stable? Where do we wish to become more dynamic?

2. Are we ready for a world of continual, small changes, or do we still believe in “punctuated equilibrium”?’

3. How many times have we tried “change management” without realizing that the game is different now?


From defending past advantages to healthy disengagement


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=hbUW-Z-mRJlJcM&tbnid=FdCnJEZ7GG_t4M:&ved=0CAUQjRw&url=http://caveatemptorblog.com/stop-phone-book-spam/&ei=JbFxUdvJI8TZOaXXgagL&bvm=bv.45373924,d.bGE&psig=AFQjCNGUiUFSbh2e_JwR1TMruY7bBsx_uQ&ust=1366491781947801

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=Yej0akGQuh9vDM&tbnid=u_oCn6Bs7mv2YM:&ved=0CAUQjRw&url=http://seekingalpha.com/article/29308-how-verizon-s-fios-will-change-the-face-of-the-telecom-industry&ei=m7FxUazhG8jQOceagNgH&bvm=bv.45373924,d.bGE&psig=AFQjCNGWxwXZ6U4TuXM61g5qJGXjb3sEEQ&ust=1366491907745964

Different disengagement strategies

Capability core to the future of the business

Capability has value, but not for us

Capability is in decline

Relatively little time pressure

Orderly migration Transition aspects of the business from today’s configuration to tomorrow’s

Garage Sale Get reasonable prices for assets we are no longer interested in

Run off Be well paid to maintain support for customer while decreasing investment

Intense time pressure

Hail Mary Divest formerly core capabilities and find a solution to migrate to the new core fast

Fire Sale Sell non-core assets we are no longer in a position to exploit

Last Man Standing Spark consolidation or otherwise try for a profitable end game position


Ask yourself…

1. Are we open to the idea that we may need to disengage? What metrics do we study?

2. Have we got processes in place to manage it well?

3. Do we recoup all the value from a business, product, technology, other, that we need to disengage from?

4. Are we prepared to manage the howls of outrage from the investing community?


From resources held hostage to deft reallocation

• Textiles• Chemicals

1940s-1960's

• Advanced Materials

• Flameproof Products

1980s-1990s• Specialty

Materials• High-IP specialty

chemicals

2000s on


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=FSDr6xSfEU36GM&tbnid=HKJD1qJLZJmYpM:&ved=0CAUQjRw&url=http://www.milliken.com/&ei=P7NxUY-6MIbBON-2gegH&bvm=bv.45373924,d.bGE&psig=AFQjCNH-qpy1DwkLQkyGLNQiwLU7-FzgjA&ust=1366492342924538

As opposed to… “the Civil War Inside Sony”


Ask yourself

1. Are powerful people running existing businesses allowed to dictate where resources will go?

2. Do our best opportunities ‘fall between the cracks’ of our current allocation mechanisms?

3. How often have promising initiatives withered away because there was no political constituency behind them?


From episodic innovation to a sustained capability


Ask yourself

i Is there an overall framework and clear roles for innovation?

i Is the ideation process systematic?i Is the discovery process appropriately

managed (redirection and “pivots” allowed)i Do we have a methodology and a place for

incubation?i Have we devoted enough resources to

acceleration, launch and ramp up?


A new mindset: from defending advantages to seizing opportunities


http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=UqMY5Nd2CGaUVM&tbnid=bLg0ULHvKtDC1M:&ved=0CAUQjRw&url=http://www.facebook.com/BerlitzCorporation&ei=EDWJUbahKa-24APUn4HABQ&bvm=bv.45960087,d.dmg&psig=AFQjCNESC0RdcN_-1nEr9FWNTNKY7eKocg&ust=1368032859539156

Pause for Questions

So what does it all mean for individual careers & talent?

From To…

Organizational systems Individual skills

A stable career path A series of ‘gigs’

Hierarchies and teams Individual superstars

Infrequent job hunting Permanent career campaigns

Careers managed by the organization

Careers managed by the individual


One consequence: The Hourglass economy


How well prepared are you?

Question Yes or No?If my current employer let me go, it would be relatively easy to find a similar role in another organization for equivalent compensation

If I lost my job today, I am well-prepared and know immediately what I would do next

I’ve worked in some meaningful capacity (employment, consulting, volunteering, partnering) with at least 5 different organizations within the last 2 years

I’ve learned a meaningful new skill that I didn’t have before in the last 2 years, whether it is work-related or not

I’ve attended a course or training program within last 2 years, either in-person or virtually

I could name, off the top of my head, at least 10 people who would be good leads for new opportunities

I actively engage with at least 2 professional or personal networks I have enough resources (savings or other) that I could take the time to retrain, work for a small salary or volunteer to get access to a new opportunity

I can make income from a variety of activities, not just my salary I am able to relocate or travel to find new opportunities


Is there any good news in all this? Yes!


http://www.google.com/url?sa=i&rct=j&q=&source=images&cd=&cad=rja&docid=aQnJQLLHEdsCVM&tbnid=XdLaETJGP8yLSM:&ved=0CAUQjRw&url=http://www.wallsave.com/wallpaper/1920x1200/wave-waves-110690.html&ei=qzXAUZXNHoW49QTdiIH4CA&bvm=bv.47883778,d.dmQ&psig=AFQjCNEEKQSeN6Zp0aQbEuSEiaIlm8fR-A&ust=1371637511538984

Rita Gunther [email protected] up for my mailing list at www.ritamcgrath.com Follow me @rgmcgrath

CONTACT RITA



hosted by: katherine t. hall associate director smith college executive education [email protected] ...

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